Denims returns all GoFundMe money after dropping lawsuit plans against Ethan Klein

Did she ever intend to go through with the lawsuit, or did her lawyer drop her?
H3 Podcast episode discussing a lawsuit.
(Image via H3 Podcast on YouTube)
TL;DR
  • Denims refunded over $46,000 raised on GoFundMe after deciding not to sue Ethan Klein for defamation.
  • Legal talks probably made it clear she was facing long odds and could lose a lot of money.
  • The story shows how tough it is for creators to take their online fights offline and into the courts.

Twitch streamer Denims has refunded over $46,000 raised through GoFundMe after abandoning plans to sue YouTuber Ethan Klein for defamation. The political commentator made the decision after consulting with legal experts about whether she even had a shot at winning against the H3 Podcast host.

The fundraiser quickly caught on with Denims’ supporters, racking up tens of thousands of dollars that were meant to pay for legal expenses. But questions soon popped up about whether the lawsuit could actually go anywhere, especially with the high costs and tough legal standards for defamation cases involving public figures.

People also started picking apart the GoFundMe campaign itself. Some noticed changes to how the page described refunds if the lawsuit didn’t get off the ground. That put more pressure on Denims to be upfront about what she planned to do.

When Denims called off the lawsuit, she pointed to a bunch of real-world concerns. She admitted the costs of a drawn-out legal fight could be way too high, especially when going up against someone with Klein’s resources.

Legal talks apparently made it clear just how risky that could be, especially after she deleted all of the videos on her YouTube channels, possibly incriminating herself before the case even began.

Their beef started after Klein called out the Arab tier list she actively participated in at TwitchCon. The whole thing played out on livestreams and social media, with both sides saying the other was behind harassment, ultimately leading to CPS being called on the Kleins.

Defamation suits in the U.S. are especially tough for public figures like Denims. They have to prove “actual malice”—which is a bigger hurdle than for everyday people. That, plus the sky-high legal bills, makes these cases really hard to win.

Klein’s been through the legal system before, too. He once won a major copyright case that helped shape the rules for fair use on YouTube. With his experience and bank account, he probably would’ve had the upper hand in any lawsuit.

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